4m Brits in energy price cut: £300m saving on the way

SAVING: Four million families on pre-paid meters are set to benefit from an energy price cap

The Competition and Markets Authority ruling follows a warning that 70% of customers in the UK are on expensive “default” tariffs rather than cheaper alternatives.

Across Britain, households are paying £1.4billion more for energy than necessary, Officials are to compile a database of people who have not switched their power supplier recently to allow them to be offered better deals.

The price cap for families on pre-payment meters is being introduced because the cheapest tariffs for those customers are currently £260- £320 more expensive than for people paying by direct debit.

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BETTER DEAL: The cap will remain in place until the introduction of smart meters

It will remain in place until the introduction of smart meters which will allow customers to access better deals.

“Our measures will help more customers get a better deal”

Roger Witcomb

Authority chairman Roger Witcomb said: “Our measures will help more customers get a better deal and put in place a modernised energy market equipped for the future.

“Customers will be alerted to the better value deals that are out there and it will be easier for them to switch.”